Direct Payment Pilots fail to collect 8%
- 17 Dec
Data released today on the Direct Payment Pilots of benefits show landlords failed to collect 8 per cent of rent on average in the first four months of the pilot projects.
Arrears were double the normal value, and as a result, 316 of the tenants have already been switched back to payment of benefit to the landlord.
6,220 tenants across Great Britain were paid directly in the six projects and 92 per cent of rent was collected on average overall, meaning arrears were around double the normal figure. The year-long projects are testing direct payment of housing benefit ahead of the roll out of universal credit next October.
Universal credit, which combines a number of benefits into one monthly payment, will be paid direct to tenants in a bid to encourage claimants to be responsible for their finances. This has raised concerns that landlords' rent arrears could rise, affecting credit ratings and their ability to borrow cheaply.
Each of the projects are testing different circumstances under which payment can be switched back to the landlord. They are also being used to test which groups of people should be exempt from direct payment and what kinds of support they need.
Rent collection levels in the project ranged from 88 per cent to 97 per cent and some landlords had trouble from the beginning, with tenants being taken to court.
Projects, involving teams of social landlords, are taking place in Scotland, Wales, Southern England, West Midlands, London and Northern England.
Lord David Freud, minister for welfare reform, said:
Direct payments of benefits will help people to step into the workplace without the many institutional barriers that now exist.
However, we have always been clear that exemptions must be in place alongside the right support for those who need it and the demonstration projects are showing us and the housing community the steps that must be taken.
The DWP has come under pressure to reveal findings from the project. It had indicated it would publish data last month, but attracted criticism from housing sector figures when it only published findings from a survey carried out before the pilots instead.
Source: Inside Housing
- 03 May
MANY MAY STRUGGLE AS A RESULT OF CHANGES TO THE UNIVERSAL CREDIT SYSTEM
The study envisages the following issues from the move which is expected to save the taxman £1billion a year by 2021:Chief executive of Child Poverty Action Group, Alison Garnham said:"This cut...
- 13 Mar
CIH SCOTLAND POINTS OUT ISSUES WITH IMPLEMENTATION OF THE NEW SINGLE PAYMENT ON UNIVERSAL CREDIT
Following recent warnings from the Scottish Parliament's Social Security Committee about problems with the new Universal Credit system, CIH Scotland has pointed out some issues with the...
- 23 Nov
THE LHA CAP WILL APPLY TO ALL TENANTS THAT RECEIVE UNIVERSAL CREDIT
These details were stated by the government:Lord Freud announced in a ministerial statement that this would "ensure simplicity and a streamlined process". He also said tenants who are moved from...
- 17 Oct
UNIVERSAL CREDIT SET TO EXPAND IN AREAS SERVED BY KIRKINTILLOCH JOBCENTRE
The beneficiaries of this would have to live within one of these postcodes: G64 4, G66 1, G66 2, G66 3, G66 4, G66 5, G66 7 and G66 8.This entitlement means working age people in these postcodes...
- 25 Aug
AFTERMATH OF UNIVERSAL CREDIT DELAYS
The labour MP also said "the minimum six-week payment period faced by new Universal Credit claimants led to reliance on emergency food parcels, triggered debt and rent arrears, and caused health...
- 25 May
FIRST ERROR AND FRAUD FINDINGS FOR UNIVERSAL CREDIT
The department's findings show that underpayments due to official errors were considerably higher than for the older Job Seekers Allowance (JSA) Programme, however, the rate of overpayments was...
- 09 Sep
Universal credit targets defended by Iain Duncan Smith
When asked about the effectiveness of the roll-out of universal credit Mr Duncan Smith said: “Universal credit is now available in more than half of jobcentres across Great Britain and will be...
- 18 Aug
Scottish carers are worse off due to universal credit
Child Poverty Action Group has sent a report to Scottish and UK ministers urging them to amend the universal credit regime to pay closer heed to Scotland’s systems and use devolved power to protect...
- 13 Aug
Universal Credit claimants rise to almost 90,000
Figures by the Department for Work and Pensions have found that 89,357 people were claiming universal credit by 9th July which was a rise of 18% compared to 75,426 on 11th June, reports Inside...
- 13 Aug
Scottish government to revamp universal credit
The Scottish Government has decided it wants to give claimants the choice of having their payments made twice a month rather than just once a month on universal credit, reports Scottish Housing...
Support Solutions 5th National Housing Support & Social Care Conference 2014 Good organisation from beginning to end. Excellent keynote speaker. Relevant and important topics for discussion which were to everyone's advantage within the supported housing sector. B.H - Stevenage Haven